Stock market investing
Dividends should be a central focus for any sound investing plan. Luckily for us, the recent explosion in internet blogging has created a vast number of reputable and educational dividend blogs to follow.
I’ve written in the past about why you should invest in stocks with dividends. Simply put, the income from an investment is an instant boost to your portfolio.
Income, or interest, from an investment or loan creates an reward for money upfront. The lender gives up capital now with the risk of not getting it back in order to earn more money through interest.
This interest can either compound for you or against you. It’s the same reason why your credit card won’t be paid off for decades with minimum payments, and why even a small amount invested over the long term can create massive amounts of wealth.
Stocks that don’t pay dividends give no incentive for the investor’s risk other than the potential of going up in price. How is that any different than gambling? At least in gambling it’s clear that you can lose money.
Since the best dividend stocks tend to increase their dividend payments each year, the income received increases exponentially. Smart investors additionally reinvest their dividends which also increases the income received exponentially.
So now you have two forces of compounding interest working for you in a single investment. That’s the power of dividends, and that’s why you should learn how to invest with dividends.
Of course I blog extensively about dividends, value investing and tips for beginners. But there are other dividend blogs that I both have read and recommend you follow.
- The Conservative Income Investor
This is an excellent dividend blog written by Tim McAleenan Jr. which teaches about combining the power of dividend growth and long term holding periods with the attractive prices and valuations of prudent value investing. Sounds a lot like me.
Tim’s Income Investing Archives are filled with articles covering many top stocks such as Walmart, Coca Cola, IBM, Bank of America, and more. What I especially like is that he takes the time to talk about the strategy and mindset behind why certain stocks are good investments at the current price.
Like I did when co-founding The Money Tree Investing Podcast, Tim uses the metaphor of investing in dividends as planting a dividend tree. The great thing is that you could stop adding to your investments during a tough financial period and your “tree” would naturally continue to grow. I couldn’t agree more.
The focus behind the blog is finding income period, whether that’s in treasuries, bonds, or dividend paying stocks. It just so happens that today’s best income opportunities are in stocks, which is why Tim writes about them.
This emphasis on income is exactly why you should follow this blog. Turns out, I’m not the only one who has figured out the importance of income and compound interest with your investing.
- Sure Dividend
Ben Reynolds is the founder behind the popular dividend blog, Sure Dividend. Ben frequently writes about and updates lists on “Dividend Aristocrats”, which are S&P 500 stocks with a track record of raising their dividend for 25 consecutive years or more.
The investing philosophy behind this website is to use Ben’s “8 Rules of Dividend Investing”, which combine particular valuations and dividend health metrics with common prudent investing advice such as diversification.
Looking at the 8 Rules and noticing the evaluation of P/E and growth in the analysis shows that there is more to these criteria than just selecting any Dividend Aristocrat. Ben is a follower of Benjamin Graham and seeks to find an adequate margin of safety.
In fact, he recently guest posted on my blog about the validity of the Graham Number in today’s investing environment. I really appreciate the takeaway that a financial metric such as this can quickly eliminate overvalued, bubble-like type stocks.
- Simply Safe Dividends
When you type “dividend aristocrats” into Google, chances are the number one result will either be Sure Dividend or Simply Safe Dividends. Like Ben’s website, Simply Safe focuses on finding good dividend yields and growth but with an emphasis on safe business models and valuations.
The president of the Simply Safe Dividends company Brian Bollinger has spent over 10,000 hours in the investment management industry and has an impressive educational background.
Brian also guest posted on my site about how he selects high quality companies with various important financial metrics. It really is quite an informative and expansive article.
- The Dividend Guy
This is a blog written by a guy named Mike. He has an interesting background where he was able to take several tens of thousands of dollars from a bank loan and turn it into $70,000+ in a very short period of time.
Mike subscribes to the dividend growth investing world, yet he does it in a little more aggressive way by splitting his portfolio into growth and core. The growth portion tries to find high flying stocks that can appreciate in a very short time frame.
On the website you can find Mike’s 7 investing principles. They are similar to mine in that he uses various financial metrics but with a specific emphasis on dividends.
- Div Hut
This is another dividend blog that subscribes to dividend growth investing. Clearly the blogs on this list understand the power of double exponential growth that can occur from a growing dividend held over a long period of time.
I really like the monthly updates that are posted to this site. Every dividend payment and stock holding is disclosed and reported, down to the penny. It’s a great way to document the journey and watch the passive income stream grow in real time.
- Income Surfer
The founder of this blog Bryan is a former engineer with a passion for trying to help people get out of the “rat race”. Obviously we have several things in common.
There’s a lot of great books that are on the recommended reading list on the site. Among these are books I’ve recommended myself, such as Kiyosaki’s book for getting out of the rat race and books that teach the power of value investing.
- Dividend Diplomats
This blog is a two man effort that combines two topics into a similar goal. This synergy of dividend investing and frugal living begets success upon success. Finding success in one area compounds into success in the either.
The guys really put everything they’ve got into trying to reach financial freedom, which means having money work for you instead of you working for money. Dividend stocks are an excellent way to do this.
The author of this blog is an anonymous baby boomer who has been writing about dividends online since 2007. His site was actually one of the first I ever stumbled on when first learning about the investing world.
Not only is there valuable education about the possibilities of using value to find the best dividend stocks, but there is also an impressive portfolio of additional dividend blogs all written by the same guy. The author is very popular on Seeking Alpha and is clearly a leader in the dividend space.
– Stock market investing